Xcel reveals major investment in renewables, will meet carbon-free target 5 years early
Xcel Energy is on track to speed up its investment in renewable energy, confirming in its latest submission to regulators that it will meet Minnesota's carbon-free law five years before the 2040 deadline.
The state's largest electric utility re-affirmed plans to shut down its remaining coal plants – Sherco and Allen S. King – by 2030, according to a new electricity supply plan approved by the Minnesota Public Utilities Commission.
The updated Upper Midwest Energy Plan includes new investments in battery energy storage systems, wind and solar power, and a natural-gas fired power plant. It also aims to extend the lives of Xcel's two carbon-free nuclear plants in Monticello and Prairie Island.
The plan is expected to reduce carbon emissions from 2005 levels by 80% by 2030, with the potential of reaching up to 88%, according to the company.
To achieve that, Xcel will add 3,430 more megawatts of wind energy by 2030, connecting to the Upper Midwest grid at the Sherco plant site in Becker, Minnesota using the proposed Minnesota Energy Connection transmission line.
It will also add 550 megawatts of grid-scaled solar energy at the Allen S. King site in Oak Park Heights, and 900 megawatts of battery energy storage across the state.
The investments will mean that renewable energy could comprise around 63% of Xcel's energy generation in the Upper Midwest, which the Star Tribune notes includes wind, solar, hydro, biomass and energy-from-waste plants.
This renewable energy supply, and the removal of coal from its energy portfolio, will be supplemented by the extended life of its nuclear plants, and also a new, hydrogen-capable natural gas-fired power plant in Lyon County. The latter will "supply power during critical times while also providing grid stability for the proposed Minnesota Energy Connection transmission line."
'Our plan positions us to advance our clean energy vision by adding wind and solar resources while reinforcing the reliability of the grid with battery storage and clean natural gas,' said Ryan Long, president of Xcel Energy — Minnesota, South Dakota and North Dakota.
'By working together with the Commission and our stakeholders, we'll meet the unprecedented growth in electricity demand in our region, invest in our communities, and maintain reliable and resilient service for our customers.'
Xcel says it will aim to keep costs low for customers by "unlocking federal tax credit savings for clean energy generation and energy storage.
The updated plan follows consultation with state departments, environmental groups and developers, with Xcel saying its new plan will mean lower bill increases from customers compared to its previous plan, which included the construction of an additional gas plant in Minnesota that has since been removed.
The proposal has been welcomed by a group of clean energy organizations in Minnesota, with Peder Mewis, of the Clean Grid Alliance, saying: "We are extremely pleased to see the amount of wind, solar, and battery storage in Xcel's Integrated Resource Plan.
"Even as Xcel Energy anticipates a dramatic increase in demand from data centers and AI, they are demonstrating an ongoing commitment to clean energy and keeping costs as low as possible for their customers by choosing clean, affordable, and reliable energy sources. Well done."
BMTN Note: Weather events in isolation can't always be pinned on climate change, but the broader trend of increasingly severe weather and record-breaking extremes seen in Minnesota and across the globe can be attributed directly to the rapidly warming climate caused by human activity. The IPCC has warned that Earth is "firmly on track toward an unlivable world," and says greenhouse gas emissions must be halved by 2030 in order to limit warming to 1.5C, which would prevent the most catastrophic effects on humankind. You can read more here.
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Xcel president: Minnesota can meet data center energy demands and 2040 carbon-free mandate
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Residents in Colorado's Elbert County fight Xcel Energy over transmission line running through their properties
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"The taxes that we will get from this project, will be offset by the money we lose in decreased property values and property valuations," says Jiblits. On its website, Xcel says they've used a third-party real estate appraiser analysis, and the transmission line will not impact property vales. Additionally, Holder said on Tuesday that Xcel will pay a 1.26% tax on its new facilities, on top of a $2.5 million project impact fee. "Their attitude is, 'We're going to do what we want. What you say doesn't matter.' They're just going through and checking boxes," Jiblits says. Eminent domain "There were several people who wanted to speak," Jiblits says about Tuesday night's meeting, "but who were unable to speak because of the ongoing litigation." That is eminent domain proceedings. Xcel told CBS Colorado partly, "We remain committed to making every effort to reach a fair and reasonable settlement, but when negotiations are unsuccessful, we have to exercise our eminent domain authority." Although alternate lines have been offered, Segment 5 is moving ahead as proposed. Jiblits says, with larger acreage farther east, families won't be as impacted from the project. "There are already rights of way out there that they could follow and use. They don't need to take our land for their project." Xcel and Elbert County residents will have to wait more than two weeks for a vote from the Board of Commissioners on June 24.
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"We are particularly proud of the progress we have made on our journey to a carbon-free electricity future, and we have done so with the most expansive set of clean energy resources in the country, including wind, solar, nuclear, hydro and natural gas." The carbon reduction progress brings Xcel Energy closer to its industry-leading vision it established in 2018 to provide customers with 100% carbon-free electricity by 2050. "Whether you're a resident of a single-family home or a technology company powering a data center, the energy we provide enables you to choose cleaner alternatives for your home or business and drives our economy forward," Frenzel said. Maintaining reliability while adding renewable energy Xcel Energy remains committed to delivering reliable, low-cost energy to its customers. The company outperforms the industry reliability standard, restoring 92% of affected customers' power within 24 hours during active storm days, and has an overall electric service reliability of 99.98%. Its residential customers' electric bills are 28% below the national average and are among the lowest in the country, according to the U.S. Energy Information Administration. The company has also lowered customers' bills through cost-effective wind and solar projects. Xcel Energy now has enough wind capacity on its system to cost-effectively power more than 2.5 million homes, quadruple the amount it had in 2005. And, from 2017 to 2024, wind projects saved customers approximately $5 billion through avoided fuel costs and earned tax credits. "We have long been leaders in sustainability in this industry — without sacrificing affordability — and we're not slowing down now," said Jeff Lyng, vice president of external affairs and policy and chief sustainability officer. "Our customers and policymakers are asking more from us as our service plays an even larger role in their homes and businesses. We must continue to balance environmental responsibility with economic prosperity and community vitality." In 2024, Xcel Energy provided $187 million in customer rebates and incentives through programs that enable customers to embrace energy-efficient lighting, appliances and more. Customers installed more than 23,000 solar systems through the company's Solar*Rewards program, and the company also connected more than 193,000 customers to more than $175 million in energy assistance programs offered by the company and by public sources. Bringing jobs and investment to communities Xcel Energy engages with community members, businesses, organizations and civic and political groups across the 1,600 cities and counties it serves to better meet residents' energy needs, connect customers to programs that save money and energy, foster economic growth and build the future workforce. Xcel Energy helps the communities it serves prosper, working with landowners, developers, municipalities and economic development organizations to ease the path to locating or expanding businesses. The company spent $5.2 billion with small or local businesses in 2024, helped create nearly 3,200 new jobs and spurred $5.1 billion in additional capital investment. The company's economic development team initiated 24 projects across the eight states it serves, which will help grow industries such as data centers, food processing and manufacturing. Together with the Xcel Energy Foundation, employees and retirees, the company gave back to its communities, donating $14.5 million across the eight states it serves and its employees contributed $3 million in economic impact through volunteering for nonprofit and community improvement projects. Read the full Sustainability Report. About Xcel Energy Xcel Energy (NASDAQ: XEL) provides the energy that powers millions of homes and businesses across eight Western and Midwestern states. Headquartered in Minneapolis, the company is an industry leader in responsibly reducing carbon emissions and producing and delivering clean energy solutions from a variety of renewable sources at competitive prices. For more information, visit or follow us on X and Facebook. About Xcel Energy Foundation The Xcel Foundation is a 501(c)(3) organization that awards charitable grants to nonprofit organizations and sponsors the volunteer programs of Xcel Energy and its subsidiaries. The majority of Xcel Energy Foundation funding comes from Xcel Energy shareholder dollars. Learn more about the Foundation's Focus Area Grants. View source version on Contacts Xcel Energy Media Relations414 Nicollet Mall, 401-7Minneapolis, MN 55401(612) 215-5300mediainquiries@ Sign in to access your portfolio
